Portland-based Esco Corp. on Tuesday said it plans to acquire Ulterra Drilling Technologies L.P. in a $325 million deal that gives it a bigger presence in the oil and gas drilling industry.

Esco, a privately held maker of metal wear parts used in mining and other industries, said Fort Worth, Texas-based Ulterra employs 400 people making polycrystalline diamond compact drill bits for building oil and gas wells.

“This acquisition allows Esco to leverage Ulterra’s deep expertise in the drilling industry and to capitalize on the growing oil and gas sector in North America,” Esco CEO Cal Collins said in a news release. “Ulterra is a natural fit for Esco given its culture of designing highly engineered wear products and delivering world-class service.”

Ulterra will operate as a separate division within Esco Corp. once the deal closes, which is expected to happen by the end of the month.